The Bull Case For RLX Technology (RLX) Could Change Following Earnings Growth And Major Share Buyback

• RLX Technology Inc. has reported its full-year 2025 results, with revenue of CNY 3,958.86 million and net income of CNY 921.87 million, alongside higher basic and diluted earnings per share from continuing operations compared with 2024.
• Over the course of its CNY 330 million share repurchase program completed in 2025, RLX bought back 12.71% of its shares, meaning recent profit growth is now spread across a meaningfully smaller share count.
• With full-year earnings rising and a sizeable buyback completed, we’ll now examine how this earnings expansion and capital return affect RLX’s investment narrative.

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RLX Technology Investment Narrative Recap

To own RLX Technology today, you need to believe it can convert tighter regulation and shifting smokers toward reduced risk products into durable, compliant earnings, despite heavy exposure to Chinese policy and illegal competition. The latest 2025 results show higher revenue and net income, while the completed buyback lifts earnings per share, but they do not materially change the central near term catalyst of regulatory enforcement or the key risk around future policy tightening.

The most relevant update here is RLX’s completion of its CNY 330 million (US$330 million equivalent) buyback program, which retired 12.71% of shares. With full year 2025 EPS at CNY 0.698 from continuing operations, that smaller share base makes each yuan of profit go further for remaining shareholders, tying directly into the earnings expansion theme and reinforcing how execution on capital returns can interact with the potential benefits of stricter enforcement against illegal products.

Yet while earnings are up and the share count is down, investors should also be aware that...

Read the full narrative on RLX Technology (it's free!)

RLX Technology's narrative projects CN¥5.9 billion revenue and CN¥1.1 billion earnings by 2028.

Uncover how RLX Technology's forecasts yield a $3.04 fair value, a 34% upside to its current price.

Exploring Other Perspectives

Before this result, the most optimistic analysts were framing RLX’s international push as a major upside, penciling in roughly 40 percent annual revenue growth and CNY 1.6 billion earnings by 2028, so if you agree that execution abroad could materially change the story you may see this latest earnings and buyback combination very differently from those who are more cautious.

Explore 2 other fair value estimates on RLX Technology - why the stock might be worth over 4x more than the current price!

Decide For Yourself

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your RLX Technology research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free RLX Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RLX Technology's overall financial health at a glance.

No Opportunity In RLX Technology?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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